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Vince Cable: Beneath the halo

Vince Cable is hailed by right and left as a prophet who predicted the crisis. But is he quite the informed economist of repute? And what about his time at Shell?

 

Is there any politician in Britain more popular or acclaimed than the Honourable Vincent Cable, member of parliament for Twickenham, deputy leader of the Liberal Democrats, and Lib Dem shadow chancellor? Cable commands swooning adulation from left and right; he has been nicknamed Prophet Elijah for his supposed prescience in financial matters. A Guardian leader hailed him as "one of the classiest politicians . . . with the confidence of an informed economist". A Daily Mail editorial claimed he was the one political figure who, on this economic crisis, "has consistently outshone his opponents on both sides of the House". "How we need him as our prime minister!" exclaimed the paper's Tory-supporting columnist Peter Oborne. Yet what has Saint Vince done to deserve such praise and admiration? Is he really the nation's Cassandra, or have we simply succumbed to the cult of Cable?

That Vince Cable is a nice man is not in question. Nor can one doubt that he was proved right about the need to nationalise Northern Rock. And he has been correct to call for curbs on bank bonuses. But neither of these positions required him to look into a crystal ball, or actually prophesy the fall of Northern Rock in September 2007, or predict the collapse of Lehman Brothers in September 2008.

So where is the evidence of his omniscience? His supporters would point to the now famous intervention in the Commons in November 2003 when he asked the then chancellor of the Exchequer, Gordon Brown: "Is not the brutal truth that with investment, exports and manufacturing output stagnating or falling, the growth of the British economy is sustained by consumer spending pinned against record levels of personal debt, which is secured, if at all, against house prices that the Bank of England describes as well above equilibrium level?"

Brown dodged the question and accused Cable of spreading "alarm, without substance, about the state of the British economy".

That exchange is reprinted triumphally in full in The Storm: the World Economic Crisis and What It Means, Cable's bestseller about the financial crisis. In that same book, however, Cable concedes that Britain's "personal debt" did not, in and of itself, cause the crash. "The trigger for the current global financial crisis was the US mortgage market," he writes.

So the issue is, did the Lib Dem deputy leader have the foresight to draw our collective attention to this particular trigger before publishing his book this year? "No, I didn't. That's quite true," he told Dominic Lawson in a Sunday Times interview in March. "One of the problems of being a British MP," he said, "is that you do tend to get rather parochial and I haven't been to the States for years and years, so I wouldn't claim to have any feel for what's been going on there."

This is a rather strange admission, though honest, for a man who claims to have seen the crisis coming. Not quite the informed economist of media legend.

Then there is the matter of City regulation. It was, in the words of the Nobel Prize-winning economist Paul Krugman, the "zeal for deregulation [that]set Britain up for a fall". Weak regulators allowed reckless bankers to take enormous risks with astounding sums of money. So one might have expected Cable the political prophet to have been arguing consistently for better, firmer and stronger regulation of the City from the outset.

On the contrary, in June 1999, speaking in a Commons debate on the Financial Services and Markets Bill, Cable endorsed "the liberal market"approach to the regulation of financial services. "No one," he said, "is arguing for an increasingly severe, more onerous and dirigiste system of regulation." Any regulation, he said, should be "done on a light-touch basis".

A decade on, once again with the benefit of hindsight, Cable calls for "radical safety measures" to be built in to a new regulatory architecture for the City. But this is too little too late. You cannot advocate light-touch regulation on the floor of the Commons but then, a decade later, pretend you were ahead of the curve in predicting the ensuing financial crash.

In fact, Cable's denunciations of the excesses of the free market ring hollow precisely because he is a robust free marketeer himself. Having defected from Labour to the Social Democrats in 1981, he is not a leftist. Rather, in the words of one backbench Liberal Democrat MP to whom I spoke, he is a "classic economic liberal". Cable was a prominent contributor in 2004 to the Lib Dems' pro-market Orange Book, which advocated introducing a US-style private health insurance scheme to replace the National Health Service. (Who says Daniel Hannan speaks for right-wing Tories only?)

At the time, the Lib Dem peer and former frontbencher Lord Greaves condemned Cable and his fellow contributors to the Orange Book as "pseudo-Blairites with little following in the wider party". Five years on, one Liberal Democrat frontbencher to whom I spoke told me: "People do regard Cable very well in the party, but among a tier of the party, and including among some of his parliamentary colleagues, he has remained less popular."

Why? Because on Cable's watch, the Lib Dems have lurched to the right, dropping their plans for a 50p-in-the-pound tax rate on high earners and committing, at their party conference in 2008, to combined tax and spending cuts - presumably in order to chase Tory votes at the next election and perhaps even prepare the ground for a coalition with the Conservatives in the event of a hung parliament.

In a pamphlet published in 2005, it was Cable, described to me by one of his frontbench colleagues as "clever and ambitious", who first intimated that the Lib Dems might drop their policy of "equidistance" between the two main parties. As he wrote, "If the pendulum swings, it may swing to a combination of Conservatives and Liberal Democrats."

Cable has strengthened his own support at the right end of the political spectrum by writing a regular column for the Mail on Sunday, in which he has railed against a "public-sector fat-cat culture" as well as the "writhing nest of quangos" - both, it is worth noting, Tory talking points. Interestingly, in the particular week in June when he issued his denunciation of public-sector "fat cats", he wrote a cover story for this magazine in which he attacked bankers' pay. Different audience, different message - the classic Liberal Democrat tactic.

Vince Cable was born in York in 1943, the son of a working-class Tory lecturer. He attended Nunthorpe Grammar School, and then read natural sciences and economics at Fitzwilliam College, Cambridge, completing a PhD in economics at Glasgow University. Before he entered parliament in 1997, Cable spent three decades as an economic adviser to organisations as varied as the Kenyan government, the think tank Chatham House and the World Bank. But perhaps the peak of his pre-political career was a two-year spell as chief economist for the oil giant Shell in the mid-1990s. In a fawning profile, the Guardian's Michael White wrote: "Please note that is not a job major multinational oil companies give to dumbos they want to shift out of accounts: it is proper work."

Proper work it ay be, but was it the kind of work that a self-described liberal and progressive should have been doing? Cable joined Shell in 1990; he was appointed chief economist in 1995, the same year as the writer Ken Saro-Wiwa and eight other leaders of the southern Nigerian Ogoni ethnic group were executed by the Sani Abacha military government. This was after a wave of state-sponsored violence in the south. In May, campaigners accused Shell before a court in New York of complicity in the violence in order to protect its oil interests. The following month, in an out-of-court settlement, Shell agreed to pay the victims' families $15.5m, but refused to accept legal responsibility for the nine deaths.

So has Cable ever spoken out against the firm? The journalist Mark Lynas, who interviewed Cable when he worked at Shell, remembers him as being deeply evasive and avoiding all questions about Saro-Wiwa. Lynas is astonished at Cable's transformation into Britain's favourite politician. "I don't know how anyone could have stayed at Shell during that period and slept at night," he told me. "Because of Shell, I've always questioned his judgement on human rights."

I asked Cable's spokeswoman if he would like to comment on Shell's payout to the victims' families. She told me that "he does not feel that he knows enough about the latest developments to be able to comment".

For a politician who has spoken of his desire to reconcile "economic liberalism with wider moral values and social justice", why the silence about his former employer and this shameful episode in its recent history? Campaigners in Britain and in Nigeria are outraged. "For a former high-ranking Shell official to parade himself as a progressive liberal smacks of rank opportunism and cynicism," Sanya Osha, author of a book on Ken Saro-Wiwa and Ogoniland, told me. "One can't take such a volte-face seriously." But perhaps he had no idea of what was going on in Shell's Nigerian operation? Osha disagrees. "I think it is inconceivable that a chief economist at Shell would be unaware of the activities of the [Nigerian] military regime in relation to the plight of the Ogoni people." Ben Amunwa of the Remember Saro-Wiwa project agrees: "I find it hard to believe that senior Shell staff were free of responsibility for what happened in Nigeria."

It is a sign of the easy ride that the national media give Cable that he has avoided any detailed examination of his time at Shell. These days, however, it is a little local difficulty that is in danger of tarnishing his national halo.

In his Twickenham constituency, Cable seems to be displaying the partisan posturing that has made voters so cynical about politicians - and the lack of leadership for which he once condemned Gordon Brown, comparing him to Mr Bean (a gag he borrowed, incidentally, from a Leo McKinstry column in the Express).

Richmond Council is determined to sell a popular riverside site in Twickenham that is home to a children's playground and a David Bellamy Award-winning garden - to property developers. In a local referendum, nine out of ten residents rejected the council's plans. Cable has said that "while I continue to have a high profile at a national level, I shall continue to be active as a local MP". But he has gone out of his way, campaigners say, to avoid commenting on the development and has failed to attend any meetings of Friends of Twickenham Riverside, a community group opposed to the proposed sell-off. A local reporter told me, "It's the biggest thing that's happened in Twickenham, and people feel he has abandoned them. He seems distracted by national, not local, issues."

“I represent Twickenham in parliament, not on the council," Cable has repeatedly told irate constituents - but residents point to several examples of their MP campaigning against the council when it was run by the Tories. Nowadays Richmond is Lib Dem-controlled.“He won't go against his own council," says Scott Naylor from the Friends of Riverside group. "He may have his national halo, but as a result of this, his local halo has fallen off." Julie Hill, owner of the David Bellamy community garden, says: "Vince Cable promised to 'kick up a fuss' over the council's plan . . . but when the time came, this was one media spotlight he didn't want to be in. World economics mean more to him than voters in his own backyard."

With the town's Conservative candidate trying to capitalise on the row, and with a Tory landslide expected next year, it would be a paradox if his local reputation cost this supposed soothsayer of the crash his place on the national stage.

Mehdi Hasan is senior editor (politics) of the NS. Read his blog at www.newstatesman.com/blogs

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

This article first appeared in the 14 September 2009 issue of the New Statesman, Where next?

Martin O’Neill for New Statesman
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1966 and all that

A year of World Cup glory, meeting Paul McCartney and eating placenta.

Fifty years ago this Saturday, on 30 July 1966, I was at Wembley. I have my ticket and my programme to prove it. I also have my 1966 ­diary, which I am looking at now. I was 30, weighed ten stone and eight pounds, and my waist was 32 inches – about as hard to believe now as England winning another World Cup final.

I am still in the same house, all these decades later, but my telephone number then was GUL 4685. GUL was short for Gulliver, I can’t remember why. In my list of contacts at the end of my diary is Melvyn Bragg, who was another recent arrival in London from Cumbria, like myself and my wife, on PRO 0790. PRO stood for Prospect, I think, which was the exchange name for somewhere over the river, possibly Kew.

My office number was TER 1234. I always thought that was a great and memorable number. It’s only now, thinking about it, that I realise that TER – meaning Terminus –
probably related to King’s Cross, which the Sunday Times was near in those days.

At the top of the charts in July 1966 were the Kinks with “Sunny Afternoon”, which I can well remember, as it was so ironically chirpy, and Georgie Fame with “Getaway”. I liked Georgie Fame – low-key, cool – but I can’t remember that tune. Both were replaced in August by the Beatles’ “Yellow Submarine”/“Eleanor Rigby”.

My day job in July 1966, on the Sunday Times staff, was writing the Atticus column. It still exists, but in a smaller, more skittery format. Previous incumbents included Ian Fleming, John Buchan and Sacheverell Sitwell, who was reputed to have got free Mateus rosé for life after giving the wine its first mention in an English newspaper.

I had been on the paper since 1960, after spending two years as a so-called graduate trainee journalist, mainly in Manchester, which was a laugh. There was no training and there were no lessons in law. You had a mentor for a few weeks and then you got on with it.

In my first few years as the boy on Atticus, I never had my name in the paper. I had to write dreary paragraphs about who might be our next man in Washington, or the bishop of London, or the master of Balliol, as if I cared. I wanted to write about footballers, gritty northern novelists, pop stars.

When I started at the Sunday Times, I felt for a while that people were prejudiced against me, because I was northern and working class and had gone to grammar school and a provincial university (Durham). Everyone else seemed to have been at Oxbridge and gone to public school.

But this prejudice was all in my head, imagined, just as it had been when I used to go from Durham to visit my girlfriend, Margaret – whom I married in 1960 – at Oxford. I was convinced that some of her posh friends were being condescending ­towards me. Total nonsense, but I had a chip on my shoulder for some years. Gone, all gone, just like my 32-inch waist. (I am now 12 stone and the new shorts I bought last week have a 38-inch waist. Oh, the horror.) If anything, these past 50 years, any prejudice has been in my favour.

Harold Wilson was the prime minister in 1966. His northern accent was even stronger than mine. I still have a letter from him, dated 21 March 1963, after I interviewed him for Atticus. In the letter, he ­describes the 1938 FA Cup final in which Preston beat Huddersfield Town 1-0, scoring in the last minute of extra time. At the bottom of the page, in handwriting, he’d added: “after hitting the crossbar”.

What I remember most about the interview was George Brown, who was deputy to
Wilson as Labour leader at the time, hanging around outside his office, drunk. Marcia Williams, Wilson’s secretary, was going around tut-tutting, making faces, complaining about George. I thought she shouldn’t have done, not in front of me, as I was a total stranger and a hack. (I don’t think we called ourselves hacks in those days, which is the normal, half-ironic self-description today.)

Harold was a football man and also a real know-all, forever boasting about his memory for facts and figures. The contents of this letter illustrate both aspects of his character. It led me later to collect a letter or autograph from every prime minister, going back to Robert Walpole. Only took me ten years.

There is a myth that England’s 1966 win helped Labour stay in power – which does not quite stand up. The general election was in March – four months before the final. But Wilson did milk England’s victory, identifying himself and the nation with our English champions.

It is possible that the reverse effect happened in 1970, when Wilson was chucked out and Edward Heath came in. England’s defeat at the 1970 World Cup by West Germany was just four days before the June general election.

***

I got my ticket for the 1966 World Cup final – for one of the best seats, priced at £5 – from my friend James Bredin, now dead, who was the boss of Border Television. Based in Carlisle, Border covered the Scottish Borders and the Isle of Man. It was a thriving, thrusting regional ITV station, now also deceased.

James’s chauffeur came to pick me up and waited for us after the match, a sign of the importance and affluence of even minor ITV stations. Border contributed quite a bit to the network, such as Mr and Mrs, starring Derek Batey, who presented 450 editions of this very popular national show. Batey was a local lad who started his show business life as an amateur ventriloquist in the little market town of Brampton, Cumbria, before becoming Carlisle’s Mr Show Business. He was so polished – lush hair, shiny suits, so starry, so glittery – that I always wondered why he was not in London, in the West End.

Border TV also produced some excellent documentaries that were networked across the ITV region, two of which I presented. One was about walking along Hadrian’s Wall and the other was about George Stephenson. For a while in the 1970s, I began to think I was going to become a TV presenter, despite being not much good. I was lousy at acting, which you need for television, and disliked asking questions to which I already knew the answers. And it took so much time. For each programme, we spent eight weeks on location with a crew of eight, just to make a one-hour documentary. Now they
do docs in a week with just two people.

For half an hour, I also imagined that I was going to become a playwright. In 1967, I had a play in the BBC’s Wednesday Play slot, awfully prestigious at the time, called The Playground. It was one of those shows that were filmed live and then wiped, so I have never seen it since, nor has anybody else. I blamed that for blighting my playwriting career, though till I was looking in my 1966 diary and saw that I was working on that play, I’d forgotten about its existence. As we go through life, we forget all the paths not trodden.

I’ve boasted endlessly about being at the 1966 Wembley final, and it was so exciting, but I can’t remember many of the details. I must have been aware of Geoff Hurst’s second goal being a bit dodgy, as there were loud complaints from the German fans, but as Sir Geoff, as he then wasn’t, went on to score a third goal, it didn’t really matter. At the time, I considered that the England-Portugal semi-final had been a better game, with our Bobby Charlton scoring two goals against one from Eusebio, but of course winning a final is winning a final and the excitement and the patriotic pride continued for weeks and months. We felt as if it had been our right to win – after all, did we not give the game to the world, lay down the first rules, show all those foreigners how to play our game?

The result was that we usually ignored all the new ideas and developments that were emerging from Europe and South America, carrying on with our old ways, stuffing our faces with steak before a game and knocking back six pints afterwards, a bit like Alf Tupper in the Rover comic. He lived on fish and chips, but on the race track he could beat anyone.

Those funny Continental players started playing in funny lightweight boots, more like slippers or ballet shoes, which seemed barmy to us. How we scoffed. How can you play properly, far less kick someone properly, unless your ankles are encased in hard leather as tough as steel? Who cared if they weighed a ton, especially in wet weather? We Brits were tough.

The top First Division stars of 1966 earned about £200 a week, including bonuses, and lived in £20,000 houses, semi-detached, on new estates with Tudor overtones. The top players drove Jaguars. But most were lucky to afford a Ford Cortina. I had one myself for a while. Awfully smart, or so I thought at the time.

Their basic wages were little more than double that of the best-paid working men, such as a foreman bricklayer or a successful plumber. Their neighbours on their estates were bank mangers or salesmen, a higher scale socially than their own background, but still fairly modest. Not like today. Footballers don’t even have neighbours any more. They are cocooned in their own gated mansions, with personal staff, gardeners, nannies, accountants, lawyers, agents.

Yet despite their modest lifestyles in those days, there were celebrity players, such as Bobby Moore, Bobby Charlton and, before them, Billy Wright, all household names, loved and admired, recognised everywhere.

None of them had an agent in 1966. The nearest thing to it was the system that operated if a team got to the FA Cup final. They would then agree to divvy up the peripheral proceeds, such as money from giving newspaper interviews, posing for staged corny photographs, opening shops, or selling their spare tickets to touts (which they were not supposed to do). They’d appoint some dodgy friend of one of the senior players to arrange the deals and collect the monies for them. Times, they always change. Otherwise, what’s the point, eh?

***

In 1966, two big events occurred in my personal life. In May that year, my son, Jake, was born – at home, in what is now our kitchen. He arrived so quickly that the midwife hadn’t turned up yet and he emerged with the cord twisted around his neck. I managed to untie it, which I have maintained since kept him alive (a trick I had learned at fathers’ classes).

Fathers’ classes – wow, what a novelty that was in the 1960s. Who says we were all chauvinist pigs back then? (Today’s young, female star writers at the New Statesman, probably.) I attended my first ones, at the Royal Free Hospital in 1964, when our firstborn, Caitlin, was about to arrive. I remember immediately thinking when the invite came that I would get 1,000 words out of this – which I did, for the Sunday Times women’s pages.

Also at those first-ever fathers’ classes at the Royal Free was a young BBC producer whose wife was also about to give birth: Wilfred De’Ath. He, too, was desperate to get a piece out of it. (He now writes occasionally for the Oldie, and he appears to be down and out and living in France.)

After Jake’s birth, I got the midwife to give me the placenta and I ate it, fried with onions. Tasted like liver. Another 1,000 words.

The other event of note in my ever-so-exciting life in 1966 was meeting Paul McCartney. When “Eleanor Rigby” came out, I thought the words – not just the tune – were so wonderful. Possibly the best poetry of the year, I said, as if I knew anything about poetry. I went to see him for Atticus in his new house in St John’s Wood, which he still has, being a very conservative feller. I talked to him about the background to the lyrics, as opposed to his hair, which interviewers were still asking him about.

A few months later, at the end of 1966, I went to see him again, wearing a different cap, as a screenwriter. I’d had a novel published the previous year, Here We Go Round the Mulberry Bush, which was being made into a film, with Clive Donner directing. We went to see Paul at his house and discussed with him if he would do the theme tune. He turned us down in the end but it was while I was with him that I suggested that there should be a proper biography of the Beatles. He said Brian (Epstein, the band’s manager) would have to agree – and there and then sat me down and helped me write a suitable arse-licking letter to him.

I eventually saw Brian, after several cancellations, at his home in Belgravia and he played me the acetate of “Strawberry Fields Forever”. I was astounded. It seemed to break every rule of what was then considered pop music. I wondered if all Beatles fans
would take to it. But I could see that it was amazing and perhaps the Beatles weren’t finished, which was what some people were saying in 1966. At my publisher, Heinemann, which paid me £3,000 for the book, there was one director who maintained the Beatles bubble was about to burst.

Brian agreed to my project and offered a clause in the contract that we had not requested or even thought of. He said he would not give any other writer access to the Beatles for two years after my book came out. This was 1966. The book came out in 1968. Two years later, in 1970, the Beatles were no more. Without realising it at the time, I became the only authorised ­biographer of the Beatles.

***

So, 1966, a big year for me, so glad I kept that diary, and also a big year for the nation. I thought at the time that the Beatles were bound to fade, eventually, while England surely would dominate world football from now on. After their humbling by Iceland at this year’s World Cup, I now realise that England will never win the World Cup again in my life, what’s left of it. And probably not even another game.

The only way to rationalise it is to tell ourselves that we are ahead of the game. We are rubbish, but in turn it will happen to all the other so-called advanced nations.

You could say Brexit is a bit like that. We are ahead of the other leading European nations in going it alone, even though it is depressing and awful and shameful. We are advanced in wilfully turning ourselves into a rubbish nation. We are leading the way, as ever. Inger-land, Inger-land.

Hunter Davies’s memoir of the postwar years, “The Co-op’s Got Bananas!” (Simon & Schuster), was published in April, followed by “Lakeland: a Personal Journal” (Head of Zeus). His final book on the Fab Four, “The Beatles Book” (Ebury), will be published on 1 September

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 28 July 2016 issue of the New Statesman, Summer Double Issue